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Gelneren
2 months ago
11

Tuttle Motorcycles Inc. manufactures and sells high-priced motorcycles. The Engine Division produces and sells engines to other

motorcycle companies and internally to the Production Division. It has been decided that the Engine Division will sell 20,000 units to the Production Division at $1,050 a unit. The Engine Division, currently operating at capacity, has a unit sales price of $2,550 and unit variable costs and fixed costs of $1,050 and $750, respectively. The Production Division is currently paying $2,400 per unit to an outside supplier. $90 per unit can be saved on internal sales from reduced selling expenses. What is the minimum transfer price that the Engine Division should accept?
Business
1 answer:
marusya05 [3.7K]2 months ago
4 0

Response:

The lowest acceptable price is $960 per unit

Explanation:

According to the available information:

The Engine Division, which is currently functioning at full capacity, has a unit sale price of $2,550 and corresponding variable and fixed costs of $1,050 and $750 per unit, respectively. The Production Division is paying an external supplier $2,400 per unit. Internal sales would result in saving $90 per unit due to reduced selling expenses.

Considering the presence of excess capacity, fixed costs will not factor into our considerations.

Variable cost is calculated as 1,050 - 90= $960

Thus, the minimum price is set at $960

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Answer:

Ensuring Shelia comprehends the economic reasoning behind staff layoffs.

Explanation:

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The main point to remember when addressing layoff-related topics is the difference between layoffs and termination due to performance issues. Layoffs are never indicative of someone's personal performance or errors; they are consistently linked to broader business circumstances, like necessary downsizing. Essentially, layoffs are fundamentally about economic matters impacting the organization.

This is why mentioning individual qualities during the layoff process is irrelevant, as the termination is not the employee's fault.

6 0
2 months ago
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Next to the following list of eight characteristics of business organizations, select a brief description of how each characteri
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Answer:

1. Control and authority of owners - one vote corresponding to each share, easily transferable

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3. Ownership transferability - can be transferred without difficulty

4. Capacity to attract substantial capital - significant capability

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Explanation:

A corporation represents a type of business:

1. To own a corporation, one must purchase its shares.

2. Establishing a corporation involves obtaining government sanctions and fulfilling numerous legal criteria.

3. Corporations can accumulate funds by selling shares, issuing bonds, and borrowing from banks and other financial institutions.

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I hope my response is beneficial to you

4 0
1 month ago
Suppose a country's productivity last year was 84. If this country's productivity growth rate of 5 percent is to be maintained,
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1 month ago
The tool crib at a large manufacturing company is responsible for providing tools to the factory workers on demand. The tool cri
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Answer:

6.4 minutes

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Waiting time =

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= [445]/[(2*35)]

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3 0
2 months ago
Suppose that on March 1, 2014 Cardullo's purchased an order of German chocolate from a supplier for $250, but didn't pay cash fo
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Answer:

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When the payment occurs on March 31, 2014, the accounts payable will be cleared by a debit, and the cash account will be credited with $250 to reflect the cash outflow from the business.

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